Diamond Manufacturing Company Provides Glassware Machines for Major Department Store

question 133

Multiple Choice

Diamond Manufacturing Company provides glassware machines for major department store retailers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of eight years and the new equipment will cost $141,969 with a eight-year life. The expected additional cash inflows are $37,000 per year. What is the internal rate of return?

• A) 13%
• B) 15%
• C) 20%
• D) 23%

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Definitions:

Physical Products

Tangible items that can be bought, sold, and used by consumers, differing from services or digital products.

Media Economy

A subset of the economy concerned with the production, distribution, and consumption of media goods and services.

News Outlets

Organizations that gather, report, and distribute news to the public via various mediums like newspapers, television, and the internet.

Advertisers

Companies or individuals who pay to promote their products, services, or ideas through various media channels.